16 May 2023
Where to invest: buy to let or holiday homes to let
Egle Kemezyte
Growth Marketer

An investment mortgage in the Netherlands can be used to buy property for rent or a holiday home. It is worth noting that the risk and return on investment levels of rental properties can vary.

For instance, while a buy-to-let property can offer a stable income, a vacation or short-term rental property may provide a higher but less predictable income. The opposite can also work. In this blog, we overview both buy-to-let and holiday-lets.

What are the differences between buy-to-let and holiday-let? 

  • Buy-to-let properties typically refer to residential properties rented out long-term, with tenants signing leases for a year or longer.

  • Contrariwise, holiday-let properties are typically furnished and rented out short-term, often for a few nights or weeks.

  • The rental income from a holiday-let property can be higher than a buy-to-let property. However, the rental income from a holiday can be seasonal and may need to be consistent throughout the year.

  • To attract bookings, holiday-let properties require more management, such as cleaning, maintenance, and marketing. Buy-to-let properties require less control as tenants usually take care of the day-to-day maintenance of the property

Mortgage for holiday homes

  • This type of mortgage is available for both new and existing recreational dwellings.

  • Transfer tax for holiday properties is 10.4 %.

  • You can finance 75% of the market value of your holiday home.

  • You can choose between an annuity or a linear mortgage.

  • Depending on your situation, you can also opt for a fixed or variable interest rate.

  • When determining mortgage eligibility, rental income is typically not considered.

Requirements for holiday mortgage in the Netherlands

  • The holiday homes in the Netherlands are typically situated on privately owned land and feature essential amenities such as water and electricity connections.

  • These homes are constructed using durable stone materials and are designed to be permanently fixed in place.

  • Additionally, they must be habitable throughout the year, suitable for all seasons.

  • While they can be used for renting purposes, they are primarily intended for personal use.

Is it possible to live in my holiday home?

The municipality determines the use of the property. It is highly recommended to check the rules and regulations of the city you are planning to purchase a property.

Can I temporarily rent out my holiday home?

If you want to rent your holiday home through Airbnb temporarily, you must first obtain written permission. Requirements apply:

  • Rent out a home for up to 60 days per year in some municipalities.

  • Never rent out the house for more than four weeks in one go.

  • Get home insurance that covers temporary rentals.

  • Comply with the regulations set by the municipality.

  • Obtain permission from the Owners' Association (if applicable).

Buy-to-let mortgages 
  • Typically, investors can obtain a mortgage up to 75% of the loan-to-value (LTV) ratio.

  • You'll need to provide 25% of the property's price through savings or equity in an existing property.

  • Buy-to-let properties are subject to a transfer tax of 10.4%.

  • To qualify for a mortgage, you must be registered, live, and work in the Netherlands.

  • You must comply with the requirements set forth by your municipality, including the Purchase Protection Act.

  • Buy-to-let mortgages typically carry an additional interest rate of 0.5% over standard mortgage rates.

Is it possible to live in my buy-to-let property?

Investment property owners cannot reside in the property as primary residents. If you want to live in your investment property, you must refinance your mortgage to a residential mortgage.

Requirements for buy-to-let properties
  • An investment property should meet the requirements for rent.

  • Each municipality has a point system based on the property size, WOZ value, energy efficiency, luxury fittings, and additional points to the property.

  • You can get a preliminary point counting via the huurcommissie website.

  • Properties with a value over 149 points are unregulated. Therefore there are no restrictions on who can live on the property and how much rent they can be charged.

Are you looking to invest in a property?
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Meet the team
Sezer Yilmaz
Egle Kemezyte
Growth Marketer
Robin Uijtdehaage
Client Director & Financial Specialist
Lisa Grondsma
Financial Specialist